Nokia Updates Its Outlook With Grim News

The Finnish cell phone maker acknowledges that he weaker consumer spending, as well as the more limited availability of credit, have impacted the global mobile device market.

"Nokia believes that its advantages of scale, leading brand, superior logistics, low cost and broad product portfolio are competitive advantages that will enable us to distinguish ourselves from the competition in a challenging 2009," said Olli-Pekka Kallasvuo, Nokia CEO.

As it follows, Nokia now expects that the industry mobile device volumes will be lower in the fourth quarter 2008 than previously expected, with estimations of industry mobile volume of 1.24 billion in 2008, instead of the earlier estimated 1.26 billion units.

Still, Nokia expects its mobile device market share in the fourth quarter 2008 to be at the same level or slightly up.

On the other hand, the company believes that Devices & Services sales and profitability in the fourth quarter 2008 will be negatively impacted.

The news comes less than weeks after Nokia's announcement to reduce its workforce by January 1 2009.